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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554

In the Matter                       of)
                                     )
1998 Biennial Regulatory Review --   ) MM Docket No. 98-98
Amendment of Part 73 and Part 74     )
Relating to Call Sign Assignments for )
Broadcast Stations                   )
                                     )
                                     )
                                     

                      NOTICE OF PROPOSED RULEMAKING

   Adopted:  June 22, 1998                    Released:  June 30, 1998  

By the Commission:

Comment Date:  [30 days after publication in the Federal Register]
Reply Comment Date:  [45 days after publication in the Federal Register] 


 1.  In this Notice of Proposed Rulemaking (Notice), we are proposing, on our own
initiative, to modify the practices and procedures set forth in 47 C.F.R.  73.3550 and 74.783,
regarding the assignment of call signs to radio and television broadcast stations.  Specifically,
pursuant to this proposal, our existing procedures will be replaced by an on-line system for the
electronic preparation and submission of requests for the reservation and authorization of new
and modified call signs.  Recently, we initiated a broad-based, streamlining rulemaking
proceeding to overhaul Mass Media Bureau policies and licensing procedures in conjunction with
our 1998 Biennial Regulatory Review.  Although not required by statute, our action today is
likewise taken in conjunction with the 1998 Biennial Regulatory Review because it will
streamline our call sign assignment procedures and result in significant improvement in service
to our broadcast station licensees and permittees.  In particular, we believe that adoption and
implementation of the on-line system described herein will enhance the speed and certitude of
radio and television broadcast station call sign assignments, thereby providing better service to
all broadcast licensees and permittees. 


                                BACKGROUND

 2.  The Commission is committed to utilizing new information technologies to better serve
our licensees and the public generally.  For the past two years, for example, we have made
virtually every FCC order, notice of proposed rulemaking, public notice and news release
available at no charge through the Internet.  We have continued to improve our World Wide Web
site at < http://www.fcc.gov >, have established an electronic mailbox, < fccinfo@fcc.gov >, for
submitting messages and questions to the agency, and have created World Wide Web home pages
for the Commission's operating bureaus.  

 3.  It is our goal to create a customer-friendly environment that uses the most current
filing and processing technologies and promotes more efficient and speedy Commission
operations.  To that end, the Commission has since 1994 made extensive use of electronic data
submission and bidding in connection with our spectrum auctions.  Since October 1997, renewal
applications for wireless radio services authorizations (FCC Form 900) have been required to be
submitted electronically.  Effective February 2, 1998, we also mandated the electronic submission
via the Internet of federal tariffs and associated documents from incumbent local exchange
carriers.  Further, we have launched a comprehensive electronic filing initiative, which includes
a proceeding to allow parties to file comments electronically in FCC notice and comment
rulemakings.  With regard to call sign applications specifically, vanity call signs for amateur
radio stations can already be requested electronically via the Internet.  The Mass Media Bureau
has also acted to streamline its operations and has completed the first stage of an extensive
project to provide for electronic filing of broadcast applications, which will scan for incomplete
or inaccurate applications and provide for automatic computer analysis of interference issues. 
Also, broadcast television licensees may currently file (and, in fact, are encouraged to file) their
Children's Television Programming Reports (FCC Form 398) electronically.  Given our
commitment to expanding the use of electronic filing in many areas including broadcast, we
believe the proposed modification in this Notice of our manual call sign assignment procedures
to be appropriate and timely.      

 4.  Under our current procedures, broadcast station licensees and permittees or counsel
acting on their behalf must telephone the Commission's call sign desk and inquire as to the
availability of the call signs in which they are interested.  Thereafter, requests for new or
modified call signs are made by letter.  See 47 C.F.R.  73.3550.  If a fee payment is required,
as is usually the case, FCC Form 159 (Remittance Advice) and the appropriate fee must
accompany the letter request and be submitted to the Commission's lock-box bank in Pittsburgh,
Pennsylvania.  Generally, new and modified call sign requests are authorized by the call sign
desk within five business days after receipt from Pittsburgh.  However, requests that are defective
because of an insufficient or faulty fee payment, or because of the Commission's intervening
receipt of a request for the same call sign, are returned.  Incomplete or otherwise deficient
requests are retained, although final processing and authorization is delayed until the necessary
information is obtained or the deficiency remedied. 

 5.  Access to the new call sign reservation and authorization system will be made by
licensees and permittees or by persons acting on their behalf via the Internet's World Wide Web. 
This on-line, electronic call sign system will enable users to determine the availability and
licensing status of call signs; to request an initial, or change an existing, call sign; and to
determine and submit more easily the appropriate fee, if any.  Because all elements necessary to
make a valid call sign reservation are encompassed within the on-line system, this system will
prevent users from filing defective or incomplete call sign requests, as may occur under the
current, manual system.  The electronic system will, moreover, provide greater certitude, as a
selected call sign is effectively reserved as soon as the user has submitted its call sign request. 
In addition, the on-line system encompasses virtually all functions previously performed manually
by the Mass Media Bureau staff.  Confirmation of receipt of any requisite fee payment will be
done electronically, and a call sign change authorization will be issued automatically the
following business day.  A call sign request requiring the submission of a fee will not become
effective until confirmation that payment of the fee has been received.

            6.  The new on-line call sign system proposed herein offers many advantages over the
Commission's existing manual call sign system.  Specifically, permittees and licensees will be
able to determine the availability of call signs and to request an initial, or change an existing, call
sign more easily and quickly.  In fact, we have estimated that a user will be able to reserve an
available call sign via the new on-line system within ten minutes.  The electronic system will
also prevent users from filing incomplete or defective call sign requests.  If a user fails to
complete a required element, such as certifying compliance with the requirements of the Anti-
Drug Abuse Act, an automatic error message will be triggered, and the user will be able to
correct the error.  In addition, authorization of the reserved call sign can be automatically issued
immediately after confirmation of fee payment, if required, or shortly after reservation.  Because
licensees and permittees will generally be able to utilize the on-line system to request and receive
an authorization for a requested call sign without Commission staff assistance or involvement,
the system will also conserve Commission resources.  For these reasons, we believe the electronic
call sign reservation and authorization system discussed in detail below will significantly improve
service to all radio and television broadcast station licensees and permittees, and we seek
comment on whether licensees and permittees should be required to utilize the system to make
call sign requests.  However, as we are sensitive to the possible inconveniences that mandatory
use of this new electronic system could impose on certain licensees and permittees, we also seek
comment on whether use of the on-line system should be permissive, rather than mandatory, for
certain licensees and permittees, or whether, if mandatory, the Commission should phase in such
a requirement. 


                                DISCUSSION 

 7.  In modifying the practices and procedures by which call signs are assigned, we
propose to retain our long-standing policy of assigning call signs on a "first-come, first-served"
basis.  Rather than requesting a call sign assignment by letter, however, broadcast licensees and
permittees and authorized persons acting on their behalf will be able to confirm the availability
of call signs and reserve new or modified call signs via the Internet.  This on-line, electronic
system will be accessible to authorized users 24 hours-a-day, seven days a week, through the
World Wide Web by navigating to <http://www.fcc.gov>.  We believe authorized users will
include representatives who are directed by licensees and permittees to act on their behalf.  To
assist in its use, the system will have on-line aids, including a User's Guide, and information
regarding the Commission's revised call sign policies and regulations.   

 8.  Broadcast licensees and permittees should particularly note that our proposal to adopt
electronic filing procedures will not alter the current rules regarding what constitutes a valid call
sign.  With one exception, only four-letter call signs (plus an LP, FM or TV suffix, if used) will
be assigned via the new on-line system.  A licensee of a station with a grandfathered three-letter
call sign will continue to be allowed to utilize the same three-letter call sign, with an appropriate
FM, TV or LP suffix, with respect to any commonly-owned station.  See 47 C.F.R.  73.3550(f). 
Because, in recent years, the instances where three-letter requests have been made have been
extremely rare, the on-line system was not designed to accommodate such infrequent requests. 
However, any licensee seeking to apply its three-letter call sign to another, commonly-owned
station will be able to do so by contacting the call sign desk directly.  In accordance with existing
rules, call signs beginning with the letter "K" will not be assigned via the electronic system to
stations located east of the Mississippi River, nor will call signs beginning with the letter "W"
be assigned to stations located west of the Mississippi River.  See 47 C.F.R.  73.3550(e);
74.783(e).  Although the on-line system will not prevent a user from requesting and reserving
a call sign in violation of this geographic rule, we propose to rescind any call sign assignment
violating the rule.  Of course, waivers of this and other call sign regulations can continue to be
requested by contacting the call sign desk directly.  We ask for comments on these proposals.

 9.  The Commission proposes to continue, as under the current rules, to assign five
character alpha-numeric call signs to low power TV stations.  See 47 C.F.R.  74.783(d). 
However, low power TV licensees will continue to be allowed to request via our new procedures
the assignment of four-letter call signs with a LP suffix, in lieu of these five-character alpha-
numeric call signs.  See 47 C.F.R.  74.783(e).  To allow low power TV permittees to make call
sign requests via the on-line system as freely as other broadcast permittees, we propose to
eliminate the existing requirement that holders of low power TV construction permits who
request four-letter call signs must submit with their requests a certification that the station has
been constructed, that physical construction is underway at the transmitter site, or that a firm
equipment order has been placed.  See 47 C.F.R.  74.783(e).  We believe that such restriction,
mandated because of the inherent limitations of the current manual system and limited
Commission personnel resources to handle the potentially large number of requests for such
changes, is no longer necessary.  We seek comment on these proposals.

 10.  Under our current call sign practices, we allow mutually agreed-to transfers of basic
call signs only in cases where licensees of stations in the same service located in the same market
exchange frequencies or where a station switches to a new frequency in the same market.  We
do not believe that continuation of this limitation any longer advances or safeguards any key
Commission regulatory objective.  We are therefore proposing to eliminate any restrictions that
currently prevent licensees or permittees in the same service from agreeing to exchanges or
transfers of call signs.

Call Sign Queries

 11.  The initial welcome screen to the new on-line call sign reservation and authorization
system will present the user with two program choices -- to issue a query to the call sign
database or to request a call sign.  Access to a description of the FCC's call sign policies and
regulations, as well as to the call sign system's user's guide, is also available.  Selecting the
"Query" button on the initial screen will launch the main "Call Sign Query" screen, where users
can determine the availability of any call sign of interest by simply entering that call sign.  If a
user submits an invalid call sign, the system will respond with an error message indicating the
call sign must be of valid length (four letters) and must begin with the letter "W" or "K."  Once
a valid call sign query has been submitted, the system will search the call sign database and
return the licensing information to the user.  If a queried call sign has already been assigned, the
system will respond that the call sign is not available and will identify to whom that call sign is
assigned or reserved.  If a particular call sign is not currently assigned, the system will respond
that the call sign is available.  Users may then immediately request or reserve such call sign by
selecting one of the following functions: (1) "Change Request"; (2) "Permittee Initial Request";
(3) "Transfer/Assignment Request"; or (4) "Exchange Request."   

Call Sign Reservations and Requests

 12.  From either the initial welcome screen to the call sign reservation and authorization
system, or following a query for an available call sign, users may request a call sign assignment. 
A "Change Request" should be made if the user currently holds a broadcast license or permit
with an existing call sign that the user would like to change to a new, available call sign.  A
"Permittee Initial Request" should be made by a user holding a construction permit who wishes
to make an initial call sign selection.  A "Transfer/Assignment Request" should be made when
a proposed transferee/assignee with a license assignment or transfer of control application on file
wants to reserve a different call sign for the station to be transferred or assigned.  An "Exchange
Request" should be made when two licensees in the same service want to mutually exchange
their call signs or where, by mutual agreement, a licensee or permittee seeks to transfer its
station's call sign to another licensee or permittee.  

 13.  Change Requests.  A licensee wanting to change its assigned call sign to a new,
available call sign should select the "Change Request" function on the "Call Sign Request Menu."
A licensee of an FM or TV station seeking to modify its current call sign only to the extent of
adding or deleting an "-FM" or "-TV" suffix should also select this "Change Request" function. 
The system will then ask the user to enter both the call sign being requested and the call sign
currently assigned to the licensee.  Again, if the user submits an invalid call sign, the system will
respond with an error message indicating that the call sign must be of valid length (four letters)
and must begin with the letters "W" or "K."  If a user submits a request to change to a call sign
that has already been assigned, the system will respond with a message stating that the requested
call sign is unavailable and identify the holder of the primary call sign.  If a request is made for
a secondary call sign (e.g., Wxxx-FM) whose primary call sign (e.g., Wxxx) is assigned to
another holder, the user will be required to certify that consent to use the secondary call sign has
been obtained from the holder of the primary call sign.  Upon initial reservation of such call sign,
the holder of the primary call sign will be automatically notified of the user's action via postcard
sent by U.S. mail on the next business day.  In addition, if a requested call sign is reserved by
the Coast Guard, the system will so inform the user and provide the Coast Guard telephone
number and contact person so that the user may request release of the call sign from the Coast
Guard.  Once written approval of the release of the call sign is received by the Commission from
the Coast Guard, Mass Media Bureau staff will add that call sign to the call sign availability
database.    

      14.  After the user submits in appropriate form the licensee's currently assigned call sign
and the requested call sign, the system will display the "Change Request Form."  This form will
display the licensee's current call sign information (including the broadcast service for which the
call sign was issued and the licensee's name and mailing address) and the requested call sign. 
The entry portion of this "Change Request Form" will ask the user for the following:

 (1) The desired effective date for the change of the call sign in month/day/year format. 
As is currently required by our rules, the specified effective date must be within 45 days of the
submission of the call sign request.  See 47 C.F.R.  73.3550(k).  Users should note that a call
sign request requiring the submission of a fee will not, regardless of the effective date specified
by the user, become effective until confirmation that payment of the fee has been received.

 (2) Certification that neither the licensee nor any shareholder, officer or director thereof,
is subject to a denial of federal benefits, including Commission benefits, pursuant to Section 5301
of the Anti-Drug Abuse Act of 1988, 21 U.S.C.  853(a).

 (3) If the request is for a secondary call sign, a certification by the requestor that consent
has been received from the primary call sign holder.

 (4) Information concerning the person making the call sign change request, including the
user's name and organization, address, telephone number and e-mail address.

If a user submits incomplete information on this "Change Request Form," the system will notify
the user accordingly, and the user will be able to enter complete information.  Users should also
be aware that certifications (such as those specified above in this paragraph) made while
requesting a new or modified call sign via the on-line system constitute representations to the
Commission upon which we will rely.  Users, including licensees or permittees or their counsel,
who submit false certifications while making call sign requests will be subject to severe
sanctions, including revocation of their station licenses or construction permits and/or forfeiture. 
See 47 U.S.C.  312(a)(1), 503.  

 15.  Upon submission of a completed "Change Request Form," the call sign reservation
system will automatically do the following:

 (1) Return an on-screen verification of the receipt of the "Change Request Form," and
indicate the "Call Sign Request Number" which should be noted for future reference.

 (2) Temporarily "lock" or reserve the requested new call sign. 

 (3) Insert the call sign change request into the queue of pending requests and into the call
sign database.

 (4) Generate the postcards acknowledging reservation of the requested call sign, which
will be sent by U.S. mail on the business day following reservation of the call sign by the user. 
These reservation postcards will be sent to both the affected licensee and to the person making
the call sign change request on its behalf.  Thus, if a person not authorized by the licensee were
to attempt to change the licensee's call sign, the system would automatically notify the licensee
that a new call sign had been requested for its station and the identity of the person submitting
such request.  In such a situation, the licensee should immediately notify the Commission that
an unauthorized request for a call sign change had been made.  If a change or other type of call
sign request is made for a secondary call sign, the system will also automatically send a
reservation postcard to the licensee holding the primary call sign. Thus, if a licensee or permittee,
contrary to its certification, were to request a secondary call sign without obtaining the consent
of the primary call sign holder, the primary holder would be notified that such a request had been
submitted.  We believe that this automatic notification procedure will provide an effective
security check on the electronic call sign reservation part of our on-line system.

 (5) If the payment of a fee is required for the call sign change requested, inform the user
that completion of the Form 159 and the fee payment are required within 15 days from the date
of the change request to complete the request.  See paragraphs 25-26 below for discussion of the
on-line Form 159.  If the fee payment is not received within the specified time frame, the
requested call sign change will be cancelled electronically and the call sign will no longer be
reserved.  Upon confirmation of receipt of the requisite payment electronically, the system will
finalize the requested call sign change.

 (6) Generate the postcard sent to the licensee acknowledging the assignment of the
requested new call sign.  This authorization postcard will contain the effective date of the new
call sign assignment (which will continue to be within 45 days of the request), and will state that
the postcard is considered part of the station license pending issuance of an authorization
incorporating the new call sign. The authorization postcard would be generated no earlier than
five business days after the call sign reservation.  If a fee payment is required for a particular call
sign change,  confirmation of such payment will also be required before issuance of the
authorization postcard. 

Following the effective date of the change of a broadcast station's call sign, the station's previous
call sign will be available for reservation by another user.  In addition, the system will
periodically generate public notices identifying all Mass Media Bureau call sign actions taken
during the specified period.  Currently, these public notices listing call sign actions are released
every two weeks.  Under our revised procedures, we would expect such public notices to be
released at least as often, and we request comment on whether the notices should be released
more frequently.        

 16.  Permittee Initial Request.  In accordance with our existing rules, the on-line call sign
system will not accept a call sign reservation request from an applicant for a new station until
the Commission has granted a construction permit.  See 47 C.F.R.  73.3550(b).  It has been our
experience that permittees of new stations apply promptly for their initial call signs after the grant
of their construction permits.  Under our revised procedures, we will continue to expect
permittees to request the assignment of their initial call signs expeditiously following the  grant
of their construction permits.  The Commission proposes, however, to no longer assign a call sign
if a permittee of a new station fails to request the assignment of a call sign within 30 days of
grant of the construction permit.  See id.  Given the promptness with which broadcast permittees
generally apply for their initial call signs, we believe that the Commission should no longer be
involved in the assignment of such call signs and that eliminating such involvement will further
conserve Commission resources.  We ask for comment on this proposal.

 17.  A holder of a construction permit who wishes to make an initial call sign selection
should select the "Permittee Initial Request" function from the "Call Sign Request Menu."  The
system will display a screen requiring the entry of the requested call sign and the permittee's
construction permit file number.  Users should enter an available four-letter call sign (with an
optional FM, TV or LP suffix); if a user submits an invalid call sign, the system will respond
with a message indicating that the new call sign must be four letters starting with "W" or "K,"
with an optional FM, TV or LP suffix.  If a user submits a request for a call sign that has already
been assigned, the system will respond with a message stating that the requested call sign is
unavailable.  If a user submits an incorrect construction permit file number, the system will
respond with a message indicating that the FCC database does not contain the specified file
number.

 18.  Submission of a valid requested call sign and construction permit file number will
display the "Permittee Initial Request Form," which is identical to, and should be completed in
the same manner as, the "Change Request Form" described in paragraph 14 above.  Upon
submission of a completed "Permittee Initial Request Form," the call sign reservation system will
automatically do the following:        

 (1) Return an on-screen verification of the receipt of the "Permittee Initial Request Form"
and indicate the "Call Sign Request Number" which should be noted for future reference.  

 (2) Insert the call sign request into the queue of pending requests and into the call sign
database.

 (3) Generate the postcards acknowledging reservation of the requested call sign, which
will, for security purposes, be sent on the business day following reservation to both the
permittee and to the person making the call sign initial request on its behalf.

 (4) Generate the postcard sent to the permittee acknowledging the assignment of the
requested initial call sign.  Because no fee payment is required when requesting an initial call
sign, this authorization postcard will be generated no earlier than five business days after issuance
of the postcards acknowledging reservation of the requested initial call sign. 

 19.  Transfer/Assignment Request.  As permitted under our current rules, an applicant
for transfer or assignment of an outstanding construction permit or license may utilize the on-line
reservation system to request a new call sign for the station to be assigned or transferred.  See
47 C.F.R.  73.3550(c).  Because, as described previously, we generally believe that Commission
involvement in the assignment of call signs is unnecessary, we propose to no longer select and
assign a new call sign in the event of a transfer or assignment of a station whose existing call
sign conforms to that of a commonly owned station not part of the transaction.  See 47 C.F.R.
73.3550(d).  We believe that the assignee/transferee alone should bear the responsibility of
requesting a different call sign or obtaining the consent necessary to retain the present or
conforming call sign from the existing owner.  In our experience, the parties to assignments and
transfers have been able to resolve the call sign issue without Commission involvement.  We seek
comment on this proposal. 

 20.  A transferee or assignee desiring to reserve a new call sign for the station it is
seeking to acquire should select the "Transfer/Assignment Request" function from the "Call Sign
Request Menu."  The system will display a screen requiring the entry of the transferee/assignee's
requested call sign, the licensee's current call sign, and the license assignment/transfer of control
application file number.  As previously discussed in detail, if the user submits an invalid or
incorrect call sign or assignment/transfer of control application number, the system will respond
with an appropriate error message and provide the user with an opportunity to correct the error.

 21.  Submission of a valid requested call sign, current call sign, and assignment/transfer
of control application file number will display the "Transfer/Assignment Request Form."  This
form is similar to, and should be completed in the same manner as, the "Change Request Form"
discussed in paragraph 14 above.  Unlike the "Change Request Form," however, this
"Transfer/Assignment Request Form" will not ask the user to enter an effective date for the call
sign change because such date will be dependent upon obtaining Commission approval of the
station's assignment or transfer.  Upon submission of a complete "Transfer/Assignment Request
Form," the call sign reservation system will automatically do the following: 

 (1) Return an on-screen verification of the receipt of the "Transfer/Assignment Request
Form," and indicate the "Call Sign Request Number" which should be noted for future reference.

 (2) Temporarily "lock" or reserve the requested new call sign.

 (3) Insert the transfer/assignment request into the queue of pending requests and into the
call sign database.

 (4) Generate postcards acknowledging reservation of the requested call sign, which will,
for security purposes, be sent on the business day following reservation to the proposed
assignee/transferee, to the current licensee of the station being assigned or transferred, and to the
user who made the transfer/assignment request.   

 (5) If the payment of a fee is required, inform the user that completion of the Form 159
and the fee payment are required within 15 days from the date of the transfer/assignment call
sign request to complete the request.  See paragraphs 25-26 below for discussion of the on-line
Form 159.  If the fee payment is not received within the specified time frame, the
transfer/assignment call sign request will be cancelled electronically and the call sign will no
longer be reserved.

 (6) After receiving notification of the consummation of the transfer or assignment,
generate the authorization postcard sent to the new licensee of the transferred/assigned station
acknowledging the assignment of the requested new call sign. This notification of the
consummation of an assignment or transfer cannot be done electronically at this time and will
be incorporated in other ongoing Bureau electronic filing initiatives. Accordingly, broadcast
licensees will continue to be required to provide written notification of such consummation to
the call sign desk, and should include in such notification the desired effective date for any
requested call sign change.  Upon receipt of written notification by the licensee or permittee of
the consummation of the Commission-approved transfer or assignment, the Mass Media Bureau
staff will enter the effective date of the call sign change specified by the assignee/transferee in
the notification, thereby finalizing the requested call sign change. 

 22.  Exchange Request.  The electronic call sign reservation system may be used to
effectuate two types of call sign exchanges.  Two licensees can simply exchange their call signs,
or one licensee may request any available call sign, while transferring its call sign to the second
licensee.  We emphasize that, for an exchange of call signs, the stations involved must be in the
same service.  Users should also note that only one of the licensees involved in an exchange
should utilize the on-line system to make the exchange request.

 23.  Licensees seeking to make a call sign exchange should select the "Exchange Request"
function from the "Call Sign Request Menu."  The screen displayed will require the entry of the
current call signs and the requested call signs of the two licensees involved in the exchange. 
Assuming that valid call signs are submitted, the system will display the "Exchange Request
Form."  This form is similar to, and should be completed in the same manner as, the "Change
Request Form" described above in paragraph 14.  The "Exchange Request Form" additionally
requires the user to certify that each licensee consents to the exchange and that each is the
primary holder of its call sign.   

 24.  Upon submission of the completed "Exchange Request Form," the call sign
reservation system will automatically do the following:

 (1) Return an on-screen verification of the receipt of the "Exchange Request Form," and
indicate the "Call Sign Request Number" which should be noted for future reference.

 (2) Temporarily "lock" or reserve the requested exchanged call signs.

 (3) Insert the exchange request into the queue of pending requests and into the call sign
database.

 (4) Generate the postcards acknowledging reservation of the requested call signs, which
will, for security purposes, be sent on the business day following reservation to both licensees
involved in the exchange and to the user who made the exchange request on their behalf. 

 (5) If the payment of a fee is required for the call sign exchange requested, inform the
user that completion of the Form 159 and the fee payment are required within 15 days from the
date of the exchange request to complete the request.  See paragraphs 25-26 below for discussion
of the on-line Form 159.  If the fee payment is not received within the specified time frame, the
requested call sign exchange will be cancelled electronically and the exchanged call signs will
no longer be reserved.  Upon confirmation of receipt of the requisite payment electronically, the
system will finalize the requested call sign exchange.

 (6) Generate the postcards sent to both licensees involved in the exchange acknowledging
the assignment of the requested call signs.  If no fee is required for the exchange, the
authorization postcards will be generated no earlier than five business days after the call sign
exchange request.

FCC Form 159 (Remittance Advice)      
  
 25.  The on-line call sign reservation system will also aid the user in the payment of any
required call sign fees.  No fee is required for licensees and permittees of noncommercial
educational and low power television stations seeking to change the call signs of their stations. 
Similarly, no fee is imposed on licensees and permittees of commercial FM and TV stations that
seek to modify their stations' existing call signs only to the extent of adding or deleting an -FM
or -TV suffix.  Further, the permittee of any commercial or noncommercial AM, FM or TV
station requesting the assignment of its initial call sign is not required to pay a fee.

 26.  In all other situations, however, if the call sign change, transfer or exchange request
involves a commercial AM, FM or TV station, the on-line system will inform the user that a fee
payment is required and that a Form 159 must be filed.  In such cases, when the call sign
reservation request has been confirmed, the user should press the "Form 159" button on the
confirmation screen, and the system will then display an FCC Form 159.  This form will already
have certain information supplied, including the Payment Type Code, the amount to be paid,
and an FCC code that will enable the matching of each particular call sign request to the fee
payment.  The user should, as instructed by the system, print the Form 159 and complete the
remaining fields.  The text at the bottom of the screen after the form contains the address to
which the completed form and payment should be mailed.  Upon submission of the Form 159,
users will have completed all elements necessary to make a valid call sign request via the new
on-line system.     

Mandatory or Permissive Use of On-Line Call Sign System

 27.  We believe that the on-line call sign reservation and authorization system described
in detail in this Notice will increase the speed and improve the certitude of the Commission's call
sign assignments.  The electronic system may be accessed at the convenience of any radio or
television broadcast station licensee or permittee who wishes to determine the availability of a
call sign or to request an initial, or change an existing, call sign.  Because the system
instantaneously reserves a call sign for the user once a valid and complete request is submitted,
users will have confidence that their requested call signs will in fact be assigned to them.  Unlike
the current, manual call sign application method, the new electronic system will also preclude
users from submitting incomplete or invalid call sign requests, thereby preventing the delays that
inevitably occur when insufficient call sign requests are submitted.  The electronic system will
moreover provide this greater speed and certainty to the public without day-to-day involvement
by Commission staff.  Given these expected benefits, we seek comment on whether broadcast
station licensees and permittees should be required to utilize the electronic system when making
call sign requests.    

 28.  However, we seek to avoid any disruption to broadcast licensees and permittees that
may not have easy access to, or are unfamiliar with utilizing, the Internet.  We therefore request
comment on the extent to which broadcast licensees, or their representatives, would be
inconvenienced by a requirement to utilize the new on-line call sign system.  If the lack of ready
access to and experience with the Internet remain significant factors for certain broadcast
licensees and permittees, such as small entities, should the Commission exempt these permittees
and licensees from a requirement to use the electronic call sign system?  If so, how should this
exempt group of broadcasters be defined?  Further, the Commission could allow a phase-in
period, during which use of the new on-line system would be permissive for some or all
broadcast licensees and permittees, before requiring all licensees and permittees to utilize the
system in making call sign requests.  Such a phase-in period could allow broadcast licensees
a period of time to familiarize themselves with the new on-line system.  If commenters believe
that a phase-in period is appropriate, they should address such questions as the length of any such
period and the steps the Commission might take to encourage use of the electronic system during
the phase-in period.

 29.  If the Commission were to make use of the new on-line call sign system permissive
rather than mandatory for certain broadcast licensees and permittees, we believe that any licensee
and permittee who continues to file manually with the Commission's call sign desk would, for
several reasons, be at a disadvantage.  First, a manually filed call sign request would have to be
entered into the electronic system by Commission staff after receipt, and the call sign being
requested would not be reserved until so entered by staff.  Thus, the manual applicant would not
receive the benefit of one of the most significant features of the electronic system, which is the
immediate reservation of the requested call sign.  Second, a broadcast licensee manually
requesting a call sign would be more likely to submit an incomplete or invalid request than a
licensee utilizing the on-line system, which prevents users from submitting defective or
incomplete requests, thereby resulting in significant delay in obtaining the desired call sign. 
Third, the effective date of a manually-requested call sign requiring the payment of a fee may
be delayed because a manual applicant cannot utilize the on-line version of the FCC Form 159. 
Instead, the Commission would need to mail the FCC Form 159 to the licensee or permittee
making a call sign request manually after staff had entered the requested call sign into the
electronic system.  We seek comment on these issues. 


                          ADMINISTRATIVE MATTERS                

 30.  Comments and Reply Comments.  Pursuant to applicable procedures set forth in
Sections 1.415 and 1.419 of the Commission's Rules, 47 C.F.R.  1.415 and 1.419, interested
parties shall file comments within 30 days of the date of publication of this Notice in the Federal
Register and reply comments within 45 days of the date of publication of this Notice in the
Federal Register.  To file formally in this proceeding, you must file an original plus six copies
of all comments, reply comments, and supporting comments.  If you want each Commissioner
to receive a personal copy of your comments, you must file an original plus eleven copies.  You
should send comments and reply comments to the Office of the Secretary, Federal
Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554.  Comments and
reply comments will be available for public inspection during regular business hours in the FCC
Reference Center (Room 239), 1919 M Street, Washington, D.C. 20554.

 31.  Initial Paperwork Reduction Act of 1995 Analysis.  This Notice proposes rule and
procedural revisions which may contain an information collection requirement.  As part of our
continuing effort to reduce paperwork burdens, we invite the general public and OMB to take this
opportunity to comment on the information collection contained in this Notice, as required by the
Paperwork Reduction Act of 1995, Pub. L. No. 104-13.  Public and agency comments are due
at the same time as other comments on this Notice; OMB comments are due 60 days from the
date of publication of this Notice in the Federal Register.  Comments should address:  (a) whether
the proposed collection of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have practical utility; (b) the
accuracy of the Commission's burden estimates; (c) ways to enhance the quality, utility, and
clarity of the information collected; and (d) ways to minimize the burden of the collection of
information on the respondents, including the use of automated collection techniques or other
forms of information technology.  In addition to filing comments with the Secretary, a copy of
any comments on the information collections contained herein should be submitted to Judy Boley,
Federal Communications Commission, Room 234, 1919 M Street, N.W., Washington, D.C.
20554, or via the Internet to jboley@fcc.gov and to Timothy Fain, OMB Desk Officer, 10236
NEOB, 725 - 17th Street, N.W., Washington, D.C. 20503 or via the Internet to
fain_t@al.eop.gov. 

 32.  Ex parte Rules.  This proceeding will be treated as a "permit-but-disclose"
proceeding subject to the "permit-but-disclose" requirements under Section 1.1206(b) of the rules. 
See 47 C.F.R.  1.1206(b), as revised.  Ex parte presentations are permissible if disclosed in
accordance with the Commission's rules, except during the Sunshine Agenda period when
presentations, ex parte or otherwise, are generally prohibited.  Persons making oral ex parte
presentations are reminded that a memorandum summarizing a presentation must contain a
summary of the substance of the presentation and not merely a listing of the subjects discussed. 
More than a one or two-sentence description of the views and arguments presented is generally
required.  See 47 C.F.R.  1.1206(b)(2), as revised.  Additional rules pertaining to oral and
written presentations are set forth in Section 1.1206(b).

 33.  Initial Regulatory Flexibility Analysis.  With respect to this Notice, an Initial
Regulatory Flexibility Analysis (IRFA) is contained in Appendix A.  As required by the
Regulatory Flexibility Act, the Commission has prepared an IRFA of the expected significant
economic impact on small entities by the policies and rules proposed in this Notice.  Written
public comments are requested on the IRFA.  We ask a number of questions in our IRFA
regarding the prevalence of small businesses in the industries covered by this Notice.  Comments
on the IRFA must be filed in accordance with the same filing deadlines as comments on the
Notice and must have a distinct heading designating them as responses to the IRFA.

 34.  Accordingly, IT IS ORDERED, That pursuant to the authority contained in Sections
4(i), 4(j) and 303 of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 154(j)
and 303, this Notice of Proposed Rulemaking IS ADOPTED.

 35.  IT IS FURTHER ORDERED, That the Commission's Office of Public Affairs,
Reference Operations Division, SHALL SEND a copy of this Notice, including the Initial
Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.

 36.  Additional Information.  For additional information on this proceeding, please
contact James J. Brown or Jerianne Timmerman, Video Services Division, Mass Media Bureau
(202)418-1600.


      FEDERAL COMMUNICATIONS COMMISSION


      Magalie Roman Salas
      Secretary 




























                                APPENDIX A

 As required by the Regulatory Flexibility Act (RFA), the Commission has prepared this
present Initial Regulatory Flexibility Analysis (IRFA) of the possible significant economic impact
on small entities by the policies and rules proposed in this Notice of Proposed Rulemaking
(Notice).  Written public comments are requested on this IRFA.  Comments must be identified
as responses to the IRFA and must be filed by the deadlines for comments of the Notice provided
above in  30.  The Commission will send a copy of the Notice, including this IRFA, to the
Chief Counsel for Advocacy of the Small Business Administration.  See 5 U.S.C.  603(a).  In
addition, the Notice and IRFA (or summaries thereof) will be published in the Federal Register. 
See id.

A.  Need For and Objectives of the Proposed Rules:  With this Notice, the Commission
commences a proceeding to modify its procedures regarding the assignment of call signs for radio
and television broadcast stations.  By replacing its existing manual procedures with a new on-line
system for the electronic preparation and submission of requests for new and modified call signs,
the Commission will enhance the speed and certitude of radio and television broadcast station
call sign assignments, while at the same time conserving Commission resources.  The proposed
implementation of the on-line call sign system will serve the Commission's goals of improving
service to all broadcast stations licensees and permittees and maximizing efficiency in the use
of Commission resources.  This review is taken in conjunction with the Commission's 1998
biennial regulatory review.  Although Congress did not mandate this area of review, the
Commission nonetheless undertakes it to assure that its rules and processes are no more
regulatory than necessary to achieve Commission goals. 

B.  Legal Basis:  Authority for the actions proposed in this Notice may be found in Sections 4(i),
4(j) and 303 of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 154(j) and
303.

C.  Description and Estimate of the Number of Small Entities to Which the Proposed Rules
Will Apply:  Under the RFA, small entities may include small organizations, small businesses,
and small governmental jurisdictions.  5 U.S.C.  601(6).  The RFA, 5 U.S.C.  601(3), generally
defines the term "small business" as having the same meaning as the term "small business
concern" under the Small Business Act, 15 U.S.C.  632.  A small business concern is one
which:  (1) is independently owned and operated; (2) is not dominant in its field of operation;
and (3) satisfies any additional criteria established by the Small Business Administration (SBA). 
Pursuant to 5 U.S.C.  601(3), the statutory definition of a small business applies "unless an
agency after consultation with the Office of Advocacy of the SBA and after opportunity for
public comment, establishes one or more definitions of such term which are appropriate to the
activities of the agency and publishes such definition(s) in the Federal Register."

 The proposed rules and policies will apply to television broadcasting licensees and
permittees and radio broadcasting licensees and permittees.  The Small Business Administration
defines a television broadcasting station that has no more than $10.5 million in annual receipts
as a small business.  Television broadcasting stations consist of establishments primarily
engaged in broadcasting visual programs by television to the public, except cable and other pay
television services.  Included in this industry are commercial, religious, educational, and other
television stations.  Also included are establishments primarily engaged in television
broadcasting and which produce taped television program materials.  Separate establishments
primarily engaged in producing taped television program materials are classified under another
SIC number.  There were 1,509 television stations operating in the nation in 1992.  That
number has remained fairly steady as indicated by the approximately 1,569 operating television
stations in the nation as of January 31, 1998.  For 1992, the number of television stations that
produced less than $10.0 million in revenue was 1,155 establishments.

 Additionally, the Small Business Administration defines a radio broadcasting station that
has no more than $5 million in annual receipts as a small business.  A radio broadcasting
station is an establishment primarily engaged in broadcasting aural programs by radio to the
public.  Included in this industry are commercial, religious, educational, and other radio
stations.  Radio broadcasting stations that primarily are engaged in radio broadcasting and that
produce radio program materials are similarly included.  However, radio stations that are
separate establishments and are primarily engaged in producing radio program material are
classified under another SIC number.  The 1992 Census indicates that 96% (5,861 of 6,127)
radio station establishments produced less than $5 million in revenue in 1992.  Official
Commission records indicate that 11,334 individual radio stations were operating in 1992.  As
of January 31, 1998, official Commission records indicate that 12,241 radio stations were
operating, of which 7,488 were FM stations.

 Thus, the proposed rules will affect many of the approximately 1,569 television stations,
approximately 1,208 of which are considered small businesses.  Additionally, the proposed rules
will affect some of the 12,241 radio stations, approximately 11,751 of which are small
businesses.  These estimates may overstate the number of small entities since the revenue
figures on which they are based do not include or aggregate revenues from non-television or non-
radio affiliated companies.
 
D.  Description of Projected Recording, Recordkeeping, and Other Compliance
Requirements:  The measures proposed in the Notice would reduce the burdens on broadcast
station licensees and permittees applying for or requesting a change in their station call signs. 
The proposal to replace the current manual call sign assignment process with an entirely
electronic system would reduce the overall administrative burden upon both broadcast licensees
and the Commission.  Given the expected benefits of the new electronic system, we seek
comment on whether to require all broadcast licensees and permittees to utilize the system to
make call sign requests, and also seek comment as to whether to do so on a phased-in basis.  We
note that such a phased-in procedure has been used elsewhere with regard to electronic filing of
applications so as to benefit small businesses.  We believe that utilization of the new on-line
system will, among other things, increase the speed and certitude of the call sign assignment
process, conserve Commission resources, and aid licensees and permittees by informing them of
errors in their call sign requests before they are actually sent.  The measures proposed in the
Notice do not alter the Commission's current rules and policies regarding call signs (such as what
constitutes a valid call sign), but modify the procedures by which call signs are assigned. 

E.  Steps Taken to Minimize Significant Economic Impact on Small Entities and Significant
Alternatives Considered:  This Notice solicits comments regarding the implementation of the
Mass Media Bureau's new on-line call sign reservation system.  Given the expected benefits of
the new electronic system for both broadcast station licensees and the Commission (see supra
 27-29), we seek comment on whether all broadcast licensees and permittees should be required
to utilize the system for reserving call signs.  We also ask for comment on other alternatives,
including exempting certain licensees and permittees (such as small entities) from a requirement
to use the electronic system or providing for a phase-in period before mandating use of the new
system.  Any significant alternatives presented in the comments will be considered.

F.  Federal Rules that Overlap, Duplicate, or Conflict with the Proposed Rules:  The
initiatives and proposed rules raised in this proceeding do not overlap, duplicate or conflict with
any other rules.







                                APPENDIX B
                              Proposed Rules   

I.  Part 73 of Chapter 1 of Title 47 of the Code of Federal Regulations is amended as follows:

PART 73 - RADIO BROADCAST SERVICES

1.  The authority citation for Part 73 continues to read as follows:

 Authority:  47 U.S.C. 154, 303, 334.

2.  Section 73.3550 is amended to read as follows:

 73.3550 Requests for new or modified call sign assignments.

(a) All requests for new or modified call sign assignments for radio and television broadcast
stations shall be made via the FCC's on-line call sign reservation and authorization system
accessible through the Internet's World Wide Web by specifying http://www.fcc.gov.  Licensees
and permittees may utilize this on-line system to determine the availability and licensing status
of any call sign; to select an initial call sign for a new station; to change a station's currently
assigned call sign; to modify an existing call sign by adding or deleting an "-FM" or "-TV"
suffix; to exchange call signs with another licensee or permittee in the same service; or to reserve
a different call sign for a station being transferred or assigned.
  
(b) No request for an initial call sign assignment will be accepted from a permittee for a new
radio or full-service television station until the FCC has granted a construction permit.  Each such
permittee shall request the assignment of its station's initial call sign expeditiously following the
grant of its construction permit.  All initial construction permits for low power TV stations will
be issued with a five-character low power TV call sign, in accordance with  74.783(d). 

(c) Following the filing of a transfer or assignment application, the proposed assignee/transferee
may request a new call sign for the station whose license or construction permit is being
transferred or assigned.  No change in call sign assignment will be effective until such transfer
or assignment application is granted by the FCC and notification of consummation of the
transaction is received by the FCC.

(d) Where an application is granted by the FCC for transfer or assignment of the construction
permit or license of a station whose existing call sign conforms to that of a commonly-owned
station not part of the transaction, the new licensee of the transferred or assigned station shall
expeditiously request a different call sign, unless consent to retain the conforming call sign has
been obtained from the primary holder and from the licensee of any other station that may be
using such conforming call sign.

                                 * * * * *
Subsection (h) is deleted and former subsection (i) is redesignated as subsection (h).

Former subsections (j), (k), (l), (m) and (n) are redesignated as subsections (i), (j), (k), (l) and
(m) to read as follows:

(i) The provisions of this section shall not apply to International broadcast stations or to stations
authorized under Part 74 of the rules (except as provided in  74.783 of this chapter).

(j) A change in call sign assignment will be made effective on the date specified in the postcard
acknowledging the assignment of the requested new call sign and authorizing the change.  Unless
the requested change in call sign assignment is subject to a pending transfer or assignment
application, the requester is required to include in its on-line call sign request a specific effective
date to take place within 45 days of the submission of its electronic call sign request. 
Postponement of the effective date will be granted only in response to a timely request and for
only the most compelling reasons.

(k) Four-letter combinations commencing with "W" or "K" which are assigned as call signs to
ships or to other radio services are not available for assignment to broadcast stations, with or
without the "-FM" or "-TV" suffix.

(l) Users of nonlicensed, low-power devices operating under Part 15 of the FCC rules may use
whatever identification is currently desired, so long as propriety is observed and no confusion
results with a station for which the FCC issues a license.

(m) Where a requested call sign, without the "-FM," "-TV" or "-LP" suffix, would conform to
the call sign of any other non-commonly owned station(s) operating in a different service, an
applicant utilizing the on-line reservation and authorization system will be required to certify that
consent to use the secondary call sign has been obtained from the holder of the primary call sign. 



II.  Part 74 of Chapter 1 of Title 47 of the Code of Federal Regulations is amended as follows:

PART 74 - EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER
PROGRAM DISTRIBUTIONAL SERVICES

1.  The authority citation for Part 74 continues to read as follows:

 Authority:  Secs. 4, 303, 48 Stat. 1066, as amended, 1082, as amended; 47 U.S.C. 154,
303, 554.

2.  Section 74.783 is amended, by deleting the final sentence of paragraph (e), to read as follows:

 74.783 Station identification.   

                                 * * * * *

(e) Low power TV permittees or licensees may request that they be assigned four-letter call signs
in lieu of the five-character alpha-numeric call signs described in paragraph (d) of this section. 
Parties requesting four-letter call signs are to follow the procedures delineated in  73.3550. 
Such four-letter call signs shall begin with K or W; stations west of the Mississippi River will
be assigned an initial letter K and stations east of the Mississippi River will be assigned an initial
letter W.  The four-letter call sign will be followed by the suffix "-LP."
  
                                 * * * * *